HMRC has officially opened applications for the new Vaping Products Duty (VPD) from 1 April 2026. This is a major regulatory change affecting manufacturers, importers, and warehousekeepers across the UK vaping supply chain.
From 1 October 2026, a new excise duty of £2.20 per 10ml will apply to all vaping liquids, whether nicotine-based or not. Alongside this, all products must carry an official duty stamp before being sold.
For many small businesses, this is not just a tax change. It is a compliance and operational shift that requires early action.
Who is affected
This applies to any business that:
Manufactures vaping products
Imports vaping products into the UK
Stores products in excise warehouses
Distributes vaping products within the supply chain
Retailers are also impacted indirectly through stock requirements and transition rules.
Key deadlines you cannot miss
1 April 2026
Applications open for VPD and duty stamps scheme
31 August 2026
Deadline to obtain and use transitional stamps
1 October 2026
Duty becomes payable
All newly supplied products must carry a duty stamp
31 March 2027
Final deadline to sell existing unstamped stock
1 April 2027
All products must be stamped with no exceptions
What businesses need to do now
Register with HMRC immediately
Approval can take at least 45 working days, and delays could prevent you from trading legally
Prepare for duty costs
At £2.20 per 10ml, this will significantly impact margins and pricing
Implement record keeping systems
You will need accurate tracking for volumes, returns, and compliance
Plan for duty stamps
You must purchase and correctly apply stamps from an approved supplier
Risks of getting it wrong
HMRC has made it clear that non-compliance will lead to penalties, fines, and potentially criminal prosecution. This is particularly important for businesses operating across imports and distribution.
How we can help
At Friendly Assist Accountancy, we support UK small businesses with:
HMRC registrations and approvals
Excise duty compliance
Cash flow forecasting
Xero setup and reporting
Ongoing tax and VAT support
If your business is affected by Vaping Products Duty, early preparation is critical.
Get in touch today to ensure you remain compliant and avoid disruption to your business.